Economy

US Bancorp Announces Resolution Finalizing Legacy BSA / AML Matters

US Bancorp Announces Resolution Finalizing Legacy BSA / AML Matters”

U.S. Bancorp failed to monitor suspicious transactions and other activities that should have raised money laundering alerts, and then its employees tried to hide the deficiencies from regulators, federal prosecutors in NY said Thursday.

The U.S. Justice Department said US Bancorp's inadequate safeguards against money laundering led the bank to miss suspicious transactions for a five-year period from 2009-2014.

The U.S. Attorney, Geoffrey Berman, said the bank's poor controls had allowed a former customer, race-car driver Scott Tucker, to launder money from an illegal payday-lending scheme.

"The bank had systemic deficiencies in its transaction monitoring systems, which resulted in monitoring gaps and a significant amount of unreported suspicious activity", said the OCC in a statement.

The company will forfeit $528 million in profits and pay fines to three federal agencies: $15 million to the Federal Reserve Board, $75 million to the Office of the Comptroller of the Currency (OCC) and $185 million to the Treasury Department's Financial Crimes Enforcement Network (FinCEN).

"Our culture of ethics and integrity demands that we do better".

Tucker's business "maintained certain deposit accounts with U.S. Bank National Association", the company reported. "As a result, U.S. Bank failed to detect and investigate large numbers of suspicious transactions".

But senior bank officials knew they should not be curtailing money-laundering inquiries just because they did not have enough employees, so they hid the practice from federal bank examiners, according to prosecutors. The banks Anti-Money Laundering Officer says the program is an effort to "use "smoke and mirrors" to 'pull the wool over the eyes, '" of one regulatory agency.

"The bank operated the program "on the cheap" by restricting head count and other compliance resources, and then imposed hard caps on the number of transactions subject to AML review in order to create the appearance that the program was operating properly", he said. Bank employees failed to fill out reports appropriately, impeding the ability for law enforcement to do their jobs.

US Bank continued to open new Tucker accounts and did not file a suspicious activity report even after learning of a Federal Trade Commission lawsuit against his businesses, doing so only after being served with a federal subpoena, prosecutors said. Tucker's payday loan operations "exploited over four and a half million working people ... struggling to pay living expenses", the indictment charged.



Like this

loading...
loading...

Latest


16 February 2018
New Zealand's Bill English Quits Politics After Election Loss
Nikki Kaye, Amy Adams, Simon Bridges and Judith Collins would be among the leading candidates to take over from Mr English as National's leader.

16 February 2018
Saturna Capital CORP Cuts Holdings in Adobe Systems Incorporated (ADBE)
The stock of Adobe Systems Incorporated (NASDAQ:ADBE) has "Overweight" rating given on Wednesday, October 7 by JP Morgan. Adobe Systems accounts for 1.8% of Chemung Canal Trust Co.'s holdings, making the stock its 24th biggest position.

15 February 2018
Senate Begins Debate On Fate Of DREAMers
McConnell indicated it is the only legislation that can get through the Senate and House and win the president's signature. The party's No. 2 Senate leader, Dick Durbin of IL , said some Democrats had "serious issues" with parts of the plan.

15 February 2018
LSU assistant coach Mickie DeMoss inducted into Women's Basketball Hall of Fame
Thompson won four consecutive championships with the Houston Comets after getting drafted first in the inaugural 1997 WNBA draft. She's also a nine-time WNBA All-Star and was theleague's all-time leading scorer until Diana Taurasi took the title in 2017.

15 February 2018
Dyess AFB Will Get New Bomber Fleet if Trump Has His Way
Accordingly, the Air Force announced a new vector, providing guidance for the modernization of America's bombers. The first B-21s are expected to reach initial operating capability in the mid-2020s.

15 February 2018
While Celebrating His Olympic Gold, Shaun White Faces Sexual Misconduct Questions
After being topped by Japanese rider Ayumu Hirano, he took an uncharacteristic misstep and crashed his landing in the second run. White , Chloe Kim, Jamie Anderson and Red Gerard have locked up all four snowboarding titles for America so far in Pyeongchang .

15 February 2018
Marjory Stoneman Douglas Football Coach Aaron Feis Killed in Florida Shooting
Although the football coach was taken to hospital with critical injuries, he succumbed to his wounds. May told the Sun-Sentinel that Feis was a "big ol' teddy bear". "Hardcore-he coached hard.

15 February 2018
Everything We Know About Florida High School Shooting Suspect Nikolas Cruz
Mutchler said he declined to communicate with Cruz, a former friend, after the suspect contacted him two weeks ago on Snapchat. Hoffman said before Israel announced Feis' death, "He's very well dedicated to the safety of the school during the daytime".

15 February 2018
Area medical marijuana site not ready
Medical marijuana will start being available for patients at state-approved dispensaries beginning today, but not yet in Altoona. Dispensaries are also allowed to sell equipment, such as vaping devices for liquid forms, to administer medical marijuana .

15 February 2018
Jamaican Women's Bobsled Coach Sandra Kiriasis Quits, Owns Team's Sled
Practice for the bobsleigh teams is on Saturday with the opening heats on Tuesday. It's unclear why they asked her to make the switch.